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My employer pays me $75/month for transportation. Does this counts as a ride sharing fringe benefit and if it is taxable or not. If so, how would I report it?

Forum|Forum|7 years ago
June 1, 2019
3 replies
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Do I multiply it by 12 and report it as $900 for the year or would I need to do something else?

TurboTax Deluxe Online

Best answer by Vanessa11_2

Transportation benefits are "Exempt up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($255), qualified parking ($255), or qualified bicycle commuting reimbursement6 ($20)"https://www.irs.gov/publications/p15b#en_US_2017_publink1000193740

If the $75/ month is used for the commuter highway vehicle, transit passes or qualified parking it would not be taxable and you would not need to include it on your return. If it was used for qualified bicycle commuting, you would need to include the $55 ($75-$20) on your return.

If it is not used for those expenses or if it is excess, then you would need to include the $900 (or $660) as "Other Income" on line 21

To do this follow these steps:

Click on Federal Taxes
Income & Expenses
Scroll down to Less Common Income and click Show More
Click Start next to Miscellaneous
Click Start next to Other income not already reported on a Form W-2 or Form 1099
Click Yes to Did you receive any other wages?

V

Vanessa11_2

Employee

Is it included in your W2?

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H

H11Author

I don't see a separate section specifically for transit on my W2 but it is included in my pay statement.

V

Vanessa11_2Answer

Employee

Transportation benefits are "Exempt up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($255), qualified parking ($255), or qualified bicycle commuting reimbursement6 ($20)"https://www.irs.gov/publications/p15b#en_US_2017_publink1000193740

If the $75/ month is used for the commuter highway vehicle, transit passes or qualified parking it would not be taxable and you would not need to include it on your return. If it was used for qualified bicycle commuting, you would need to include the $55 ($75-$20) on your return.

If it is not used for those expenses or if it is excess, then you would need to include the $900 (or $660) as "Other Income" on line 21

To do this follow these steps:

Click on Federal Taxes
Income & Expenses
Scroll down to Less Common Income and click Show More
Click Start next to Miscellaneous
Click Start next to Other income not already reported on a Form W-2 or Form 1099
Click Yes to Did you receive any other wages?